Deck 7: Recognizing and Rewarding Employees

Question 1

Which of the following is an external factor that can influence the rates of wages required to recruit or retain competent employees?

A)labour market conditions
B)employer's compensation policy
C)willingness to pay
D)employee's relative worth

Answer 1

A

Question 2

Which system of job evaluation is being used when raters are simply arranging jobs in order from highest to lowest relative worth based on their overall knowledge of the jobs?

A)job grade system
B)factor comparison method
C)point system
D)job ranking

Answer 2

D

Question 3

What is a manager attempting to do by using a pay-for-performance standard?

A)increase the base salaries of employees
B)increase total organizational performance by applying strategic goal setting
C)increase employee motivation by paying employees on a skills-based concept
D)increase employee output through linking performance with desired employee rewards

Answer 3

D

Question 4

What will most likely result from determining wage increases solely on the basis of the CPI?

A)employees will be motivated in the short run
B)a more equitable compensation system will be created
C)stronger pay-for-performance perceptions will occur
D)pay rates within a pay structure will be compressed

Question 5

Which method of comparison is NOT used in job evaluation?

A)job ranking system
B)job worth system
C)point system
D)job classification system

Question 6

Which of the following is an internal factor that can influence the wage mix?

A)legal requirements
B)area wage rates
C)employee's relative worth
D)labour market conditions

Question 7

Which of the following is an external factor that can influence the wage mix?

A)the employer's ability to pay
B)the cost of living
C)the worth of the job
D)the employee's relative worth

Question 8

What are employees who are compensated on an hourly basis also known as?

A)wage earners
B)salaried employees
C)piecework employees
D)commission earners

Question 9

What item identifies the salary component of a compensation system?

A)merit pay
B)base pay
C)cash bonuses
D)commissions

Question 10

How are employees classified when their compensation is calculated on the basis of weekly,or monthly periods?

A)hourly employees
B)management employees
C)salaried employees
D)permanent employees

Question 11

What do labour-market conditions reflect?

A)the forces of supply and demand for qualified workers within an area
B)the total amount of qualified labour available to a hiring employer
C)the wage rates for specific types of labour
D)the employer market available for those seeking employment

Question 12

What are organizations with formal job systems more likely to rely on to determine wage rates?

A)wage equity comparisons
B)worth analysis
C)job evaluation
D)expert opinions

Question 13

What is considered to be a common goal of compensation policies?

A)to influence customer behaviours
B)to manage the performance of key staff
C)to control the compensation budget
D)to remain competitive in the product market

Question 14

What does employee compensation refer to?

A)certain forms of pay and rewards to employees
B)pay and rewards to employees
C)all forms of pay or rewards to employees,both direct and indirect
D)cash payments only

Question 15

What is the proper term for the process of determining the relative worth of jobs in order to determine pay rates?

A)job evaluation
B)job analysis
C)job determination
D)job diagnosis

Question 16

What is the measure of the average change in prices over time in a large "basket" of goods and services purchased by Canadians known as?

A)the consumer price index
B)the inflation index
C)a cost of living allowance
D)a cost of living adjustment

Question 17

What is the simplest method of job evaluation?

A)point method
B)job classification method
C)factor comparison method
D)ranking method

Question 18

Based on productivity research,what amount of increase in employee output is expected following implementation of a pay-for-performance program?

A)5 to 10 percent
B)15 to 35 percent
C)35 to 50 percent
D)50 to 75 percent

Question 19

What would an employer wishing to raise the "real wages" of employees have to do?

A)grant across the board wage increases
B)re-evaluate jobs in order to upgrade their worth
C)pay employees on a pay for performance standard
D)grant wage increases larger than the cost of living

Question 20

Under what circumstances will employees deem that compensation is equitable?

A)when the work is perceived to be equally distributed among team members
B)when the compensation is perceived to be equal to the value of the work performed
C)when the compensation system uses the same methods for all job types
D)when the work is perceived to be appropriate for their hierarchical level

Question 21

In which type of incentive plan does an employer pay special sums based on the organization's net income over a specified period?

A)profit sharing plan
B)merit raises plan
C)gainsharing plan
D)individual bonus plan

Question 22

What is the name of the incentive plan in which both employees and the organization share the financial gains according to a predetermined formula that reflects improved productivity and profitability?

A)gain sharing plan
B)group incentive plan
C)profit sharing plan
D)variable pay plan

Question 23

How can the relationship between the relative worth of jobs and their pay rates be represented?

A)with a regression line
B)with a salary progression chart
C)with a wage curve
D)with a pay gradient

Question 24

What type of compensation program compensates employees for the knowledge they possess?

A)seniority based pay plans
B)performance based pay plans
C)skill-based pay plans
D)merit based pay plans

Question 25

Which step is unnecessary when creating a factor comparison system?

A)development of pre-determined salary grades
B)comparison of compensable factors between evaluated jobs and key jobs
C)ranking of jobs by a selected committee
D)assignment of total points to each compensable factor

Question 26

When conducting a wage and salary survey,what is important for the employer to survey?

A)a wide variety of employers in the industry
B)all of the jobs within the organization
C)organizations very similar to their own organization
D)a statistically representative sample of organizations in the industry

Question 27

Which system of job evaluation is being used when jobs are classified according to a series of predetermined pay grades?

A)Hay profile system
B)factor comparison system
C)job ranking system
D)job classification system

Question 28

What condition must exist for an incentive plan to work well?

A)better than average employee-employer relations
B)clearly defined job descriptions and job classifications
C)a "clear line of sight" from employee performance to organizational performance
D)a compensation system that is designed to ensure equitable base pay rates

Question 29

What is the term used for the area from which employers obtain certain types of workers?

A)labour market
B)recruiting area
C)job market
D)supply region

Question 30

What factors are used as the basis for creating a point system for job evaluation?

A)skill factors
B)compensable factors
C)knowledge factors
D)descriptive factors

Question 31

What must an employer do to create a job classification system?

A)evaluate jobs with the use of a job evaluation scale
B)rank jobs according to the beliefs of committee members
C)create job grades with increasing amounts of responsibility,skill,knowledge,or ability
D)establish a point plan to evaluate all jobs

Question 32

What would be the most likely geographic scope for a wage and salary survey for highly specialized jobs?

A)national
B)local
C)regional
D)provincial

Question 33

What is known as a quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of specific job elements?

A)the point system
B)the job ranking system
C)the job grade system
D)the factor comparison system

Question 34

What is required of managers who wish to use the point system of job evaluation?

A)they must rank jobs by job classification
B)they must select key job categories for comparison purposes
C)they must link point totals of job types to the wage curve
D)they must evaluate jobs based on compensable factors

Question 35

What do skill-based pay plans encourage employees to do?

A)focus on the type of job where they can display their specialty
B)pursue work assignments that focus on narrowly defined requirements
C)display an array of competencies that can be applied to a range of jobs
D)leave the organization to pursue further academic credentials

Question 36

What are the five most commonly used compensable factors in a factor comparison system?

A)experience;mental effort;physical effort;accountability;working conditions
B)skill;mental effort;physical effort;responsibility;working conditions
C)experience;physical effort;accountability;responsibility;working conditions
D)skill;physical effort;accountability,responsibility;working conditions

Question 37

What would an employer do to encourage an employee to accept a promotion to a job in a higher grade?

A)increase the point spread of pay grades
B)decrease the point spread of pay grades
C)decrease the size of successive rate ranges
D)increase the size of successive rate ranges

Question 38

Which type of compensation is intended to improve the quality of work lives and personal lives of employees?

A)commissions
B)employee benefits
C)stock options
D)financial incentives

Question 39

Which pay system would an organization likely use to establish greater job-staffing flexibility?

A)straight pay
B)incentive pay
C)skill-based pay
D)two-tier pay

Question 40

Which type of incentive plan rewards team members when agreed-upon performance standards are met or exceeded?

A)gain sharing plan
B)profit sharing plan
C)employee stock ownership plan
D)group-based incentive plan

Question 41

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.Which of the following is a voluntary benefit,not required by law,provided at All Season Fitness?

A)discounted fitness equipment and clothing
B)tuition assistance
C)Employment Insurance (EI)
D)Workers' Compensation

Question 42

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.Which of the following is a benefit,required by law,at All Season Fitness?

A)Canada Pension Plan
B)Health and Welfare Benefits
C)Retirement and Pension Plans
D)Pay for Time not Worked

Question 43

What does the motivational value of an employer-provided benefits plan depend upon?

A)how the benefits plan is designed and communicated
B)how the benefits plan is related to employee performance
C)how the benefits plan is comparable to employees with similar jobs
D)how the benefits plan is administered and funded

Question 44

Which benefit program is intended to help workers cope with a wide variety of problems that interfere with the way they perform their jobs?

A)employee assistance program
B)perquisites (perks)
C)workers compensation
D)wellness program

Question 45

Which of the following are NOT usually included in child-care assistance programs?

A)family leave
B)on-site child care centres
C)alternative work schedules
D)private child care allowance

Question 46

Which of the following are voluntary employee benefits?

A)statutory holidays
B)minimum vacation pay
C)educational assistance plan
D)overtime premiums

Question 47

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.A female coworker is being compensated 10% less than Ryan.She is also a student working part-time,doing the same job and has the same qualifications and experience as Ryan.What is the legal term for this compensation inequity?

A)equal pay for equal work
B)pay equity
C)pay inequity
D)unfair compensation

Question 48

Which plan helps employees provide support to parents and other aging relatives while remaining actively at work?

A)hospitalization residential care benefit
B)old-age security benefit
C)family allowance benefit
D)eldercare benefit

Question 49

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.What is the 10% commission pay used at All Season Fitness called?

A)merit pay
B)base salary
C)bonus pay
D)incentive pay

Question 50

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.The owner of All Season Fitness would like to conduct a systematic procedure to determine the relative worth or value of jobs.What is this called?

A)job design and measurement
B)job analysis
C)job evaluation
D)job performance review

Question 51

What are the three types of benefits provided under the Canada/Quebec pension plan?

A)retirement,disability,and survivor
B)retirement,survivor,and healthcare
C)retirement,vacation,and disability
D)disability,old age security,and survivor

Question 52

Which statement includes "other required benefits" that legislation requires employers to provide?

A)extended medical insurance
B)minimum vacation pay
C)healthcare spending account
D)accidental death and dismemberment coverage

Question 53

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.Which advantage would All Season Fitness experience if their compensation levels and decisions were not kept secret?

A)employee trust in the compensation system
B)increased employee motivation,if it is an equitable system
C)organizational effectiveness
D)greater freedom for managers in employee pay decisions

Question 54

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.Which of the following would be an internal factor that would influence the setting of pay levels at All Season Fitness?

A)compensation policy;base pay and incentive pay
B)the cost of living in Penticton
C)local union wages
D)legal considerations

Question 55

Which item below is most significantly affected by "pay for time not worked"?

A)benefit costs
B)human resources plan
C)schedule of operations
D)operating plan

Question 56

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.Which of the following is an advantage experienced by All Season Fitness,resulting from their sales commission practices?

A)easily administered pay
B)improves pay equity
C)clear link between pay and performance
D)focuses efforts on one aspect of the work

Question 57

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.What would be an external factor that would influence the setting of pay levels at All Season Fitness?

A)the perceived worth of the retail clerks' jobs
B)the performance of the retail clerks,such as increased sales
C)labour market conditions
D)the owner's willingness to pay

Question 58

Which government sponsored benefit program provides weekly benefits to a person who is unable to work through no fault of his/her own?

A)employment insurance
B)severance pay
C)sick pay
D)termination pay

Question 59

Which plan helps employees keep up to date with advances in their occupational fields?

A)career counseling
B)human capital formation program
C)educational assistance plan
D)keep fit plan

Question 60

How are wellness programs intended to benefit employees?

A)they help employees to manage their stress levels
B)they provide diagnosis,limited counselling and referral services
C)they provide subsidies for professional development
D)they compensate employees during periods of illness

Question 61

Salaried employees are those whose compensation is computed on the basis of weekly,biweekly,or monthly pay periods.

Question 62

The worth of a job is determined formally through the wage and salary survey.

Question 63

The employer's ability to pay is an external factor influencing the wage mix.

Question 64

Studies have demonstrated that there is no link between an integrated approach to rewards and achieving strong business results.

Question 65

Wages of unionized employees are generally higher than those of non-union employees.

Question 66

Wage compression can be avoided by granting wage increases solely on the basis of the CPI.

Question 67

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.What would be the third step All Season Fitness could take in evaluating its jobs?

A)job analysis information
B)wage and salary surveys
C)pricing jobs
D)job evaluation

Question 68

The rates at which employees are paid are directly or indirectly influenced by a combination of internal and external factors.

Question 69

When wage rates rise above existing area levels,an employer's labour costs may become excessive;therefore,it is important to use wage surveys.

Question 70

Compensation policies are externally equitable when employees believe that the wage rates for their jobs approximate the job's worth to the organization.

Question 71

Research has shown that employees increase output by an average of 50 percent after installation of a pay-for-performance program.

Question 72

Because of the many problems in the way the CPI is calculated,wage setters feel that it is not important.

Question 73

Organizations may choose to raise their selection standards and hire better-qualified employees,if rates of pay are high,thereby creating a large pool of applicants.

Question 74

Piecework is far more prevalent than hourly work as a basis for compensating employees.

Question 75

Pay equity is achieved when employees' compensation is equal to the value of the work they perform.

Question 76

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
Please refer to Scenario 7.1.Which method of determining the relative worth of jobs would be the most popular and most used method at All Season Fitness?

A)job ranking
B)job grading
C)factor comparison
D)point system

Question 77

Compensation for work performed in most organizations has traditionally been on an hourly basis.

Question 78

The consumer price index tracks the change in price over time of a market-based "basket of goods and services".

Question 79

Compensation must be purposefully linked to the organization's mission and general business objectives.

Question 80

Compensation should be tailored to the needs of the organization,not its employees.